STAFF CHRISTMAS PARTIES AND GIFTS

  • The most tax effective way to hold a staff Christmas party is to hold it on the business premises on a working day with only employees and clients attending.  If only finger food or light meals are provided and no alcohol, and the cost is less than $300 per head, the entire cost is tax deductible and not subject to fringe benefits tax.
  • A tax deduction can be claimed for gifts to employees and clients if the value is less than $300 per employee or client and the gift is not entertainment (e.g. not theatre, movie or sports events tickets).